Teva secures USD400M from Blackstone to advance bowel disease drug development

USA—Teva Pharmaceuticals has secured USD400 million from private equity investor Blackstone Life Sciences to advance the clinical development of duvakitug, an experimental treatment for inflammatory bowel disease.

The Israeli pharmaceutical company will receive the funding over four years to support ongoing trials of the anti-TL1A antibody, which Teva is co-developing with Sanofi.

Under the agreement, Teva will pay Blackstone an undisclosed milestone payment if the U.S. Food and Drug Administration approves duvakitug.

Blackstone will also receive commercial milestone payments and low single-digit royalties on worldwide sales of the drug.

Building on promising clinical data

The funding announcement comes two weeks after Teva shared encouraging long-term data for duvakitug.

The drug has already demonstrated its potential in treating ulcerative colitis and Crohn’s disease, the two most common forms of inflammatory bowel disease.

In late 2024, both arms of a phase 2 study met their primary endpoint of clinical remission.

Last month, Teva and Sanofi released maintenance data showing, they said, durable clinical and endoscopic efficacy.

The companies launched phase 3 studies for both ulcerative colitis and Crohn’s disease in the final quarter of 2025, marking a significant step toward potential market approval.

Competitive landscape and market position

Duvakitug faces stiff competition in the anti-TL1A space. Merck & Co. is developing tulisokibart, while Roche advances afimkibart, both of which are also in phase 3 trials.

Additionally, several blockbuster drugs already dominate the inflammatory bowel disease market, making regulatory approval only the first hurdle in a challenging commercial landscape.

Strategic growth initiative

Evan Lippman, Executive Vice President of Business Development at Teva, positioned the Blackstone deal as a key component of the company’s “Pivot to Growth” strategy.

“By pursuing disciplined, capital-efficient partnerships, we are accelerating pipeline advancement while maintaining financial strength,” Lippman explained.

He emphasized that Teva will continue using this model to build a more innovative and growth-oriented company.

This partnership marks Teva’s second major funding agreement in recent months.

In January, the company secured up to USD500 million from Royalty Pharma to support TEV-‘408, an anti-IL-15 antibody currently in trials for celiac disease and vitiligo.

Paris Panayiotopoulos, Senior Managing Director at Blackstone Life Sciences, expressed confidence in the collaboration.

 “Duvakitug has the potential to be a best-in-class therapy in a large and growing space, and the Teva and Sanofi teams are well positioned to develop and commercialize this important medicine,” he stated.

Dr. Nicholas Galakatos, Global Head of Blackstone Life Sciences, highlighted the investment’s broader significance.

“This transaction further demonstrates our focus on partnering with leading biopharmaceutical companies to execute their growth initiatives,” he said.